The paper "Mainland China’ s Value System - Australian Biscuit Company" is a great example of a business case study. Over the past decades, the world has experienced an increase in the proportion of multinational businesses. The onward walk of globalization brings to light the requisite to understand both organizational behavior and organizational performance within export markets, which are requisite to the establishment of multinational businesses (Zou, & Fu, 2011). Exporting a company’ s products, even though a pleasant means of growing the company, entails numerous risks. As Keillor (2013) establishes, exporting in conventionally perceived as the best strategy for firms novel to the international operations to expand into the host market.
Hence, to be successful, entrepreneurs seeking to venture into foreign markets ought to gather info, prepare export reports, line up essential financing, and make a sequence of core decisions. A firm marketing approach is a prerequisite toward reaching international markets. In opting for the appropriate marketing approach, many researchers establish that cultural diversities play a fundamental role because it is a substantial factor influencing shopping behavior and consumer market (Doole, & Lowe, 2008; Herrmann, & Heitmann, 2006; Subramanian, & Bala, 2001; Usunier, 2000).
The cultural diversities among nations imply that marketing approaches do differ from those employed domestically. Hence, with the endeavor of venturing into foreign markets, it is critical for the company to have a lucid comprehension of the economic conditions, customs, and culture of the foreign country. Besides, the company can communicate with potential buyers to learn everything pertaining to distribution channels, local rules, and competition. Background information It is emerging common that the leading businesses have embarked on an expansion of their products within numerous nations, thus becoming large both economically and in size (Keegan, 1989).
An interesting phenomenon and that which draws much attention is when companies aim at reaching novel markets away from their domestic markets. In this perspective, as Kimweli (1991) has found out, marketing managers are faced with a dilemma on whether to follow similar strategies like the ones they have used within the domestic market or to modify them to fit within the host nations. Accordingly, international marketing involves either standardization or customization or both.
Doole and Lowe (2008) define standardization as the means of developing a marketing approach as if the entire globe was an inimitable market. It stipulates proposing a standard service or product within all regions and establishing similar marketing mix for each country. This requires offering standardized products, promotion campaigns, and prices as well as employing universal distribution channels within every market. Conversely, customization considers individual regions as specific, thus focusing on the regional, national, and cultural uniqueness (Kwelepeta, 1991). Accordingly, the business that aims at expanding into novel regions has a tendency to adapt to every market to meet the demands of the diverse regions.
As elucidated, customization and standardization are the entry strategies representing the two ends, and businesses adapt the marketing mix to the explicit region and its culture (Doole, & Lowe, 2008). Taking into account the upshot of cultural diversities on a business’ s entry strategies to novel markets, these diversities ought to be critical for the business’ s marketing approach within foreign markets. This is predominantly vital when taking into consideration the buying behaviors of consumers that vary across cultures (Doole, & Lowe, 2008; Usunier, 2000).
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